Stages:

• Early
• Seed

 

Industries:

Information Technology

Life Sciences & Healthcare

 

Description:

TNInvestco is a state-sponsored, 'venture capital type' program in which the state, using a competitive process, has picked ten different firms to provide capital to high-growth, transformational businesses in Tennessee. The state offered $200 million in gross premium tax credits for future years use to insurance companies that invest in companies qualified by the State of Tennessee as a 'TNInvestco'. The TNInvestcos have sold the future years tax credits for up-front capital to invest in Tennessee businesses. The TNInvestco program is administratively housed in the Department of Economic and Community Development. For Tennessee small and start-up businesses to qualify to receive investment funds from a TNInvestco, a business must meet certain requirements. The business must be independently owned and operated. The business must be headquartered in Tennessee. Its principal business operations must be located in Tennessee, and at least 60% of its employees must be located in Tennessee. However, a business from outside of Tennessee may be considered if they commit to move their headquarters and operations within 12 months after receiving funding from a TNInvestco. The business must not be principally engaged in professional accounting, medical, or legal services; banking or lending; real estate development; insurance; oil and gas exploration; or direct gambling services. Additionally, demonstration of a high-growth potential will be an important qualification for receipt of funding. The business must employ no more than 100 employees. Once a business qualifies to receive investment funds, it may continue receiving funds so long as it continues to be headquartered and principally operated in Tennessee with at least 60% of its employees located in Tennessee.